Eastern North Carolina's Emerging Economic Powerhouse: The I-95/I-87 Corridor

In the evolving economic landscape of the Southeastern United States, Eastern North Carolina is positioning itself as a major growth corridor, leveraging the strategic intersection of two vital interstate highways—I-95 and I-87. This transportation nexus is creating unprecedented opportunities for economic development, real estate investment, and population growth in a region historically overshadowed by North Carolina's more urbanized central areas.

The Strategic Intersection: I-95 Meets I-87

Interstate 95, the major north-south artery of the Eastern Seaboard running from Maine to Florida, has long served as a crucial transportation corridor through Eastern North Carolina. Now, with the development of Interstate 87—designated to connect Raleigh to Norfolk, Virginia—the region is gaining an essential east-west connection that creates a powerful transportation crossroads.

The most significant point of convergence occurs in the Rocky Mount area, where I-95 and future I-87 (currently partially complete) intersect, creating what economic developers are increasingly referring to as a "logistics golden zone." This intersection serves as a natural hub for distribution, manufacturing, and intermodal transportation operations.

"Future I-87 replaced Future I-495 along the freeway taking U.S. 64 east from the Triangle to I-95 at Rocky Mount," notes the Interstate Guide, highlighting the strategic importance of this connection that will eventually extend northward along the U.S. 17 corridor to Virginia and the Hampton Roads area.

The CSX Carolina Connector: Catalyst for Development

Perhaps no single project better illustrates the transformative potential of the I-95/I-87 intersection than the CSX Carolina Connector (CCX) intermodal terminal in Rocky Mount. Opened in late 2021, this state-of-the-art facility represents a $160 million investment on 330 acres of land and serves as a powerful magnet for additional economic activity.

The terminal features three wide-span, zero-emission electric cranes with a lift capacity of 110,000 containers per year and is designed to transfer freight between trucks and trains, significantly enhancing the region's logistics capabilities. The terminal directly employs approximately 300 workers, but its economic impact extends far beyond those direct jobs.

"The CCX terminal is a demonstration of how CSX is creating sustainable supply chain solutions for customers by expanding our intermodal network in Eastern North Carolina and connecting to the busy I-95 corridor," said Nathan Goldman, CSX executive vice president and chief legal officer at the facility's opening. "We are proud that this project will be a catalyst for economic growth and development in the region."

The facility's strategic positioning—near both I-95 and the future I-87—allows it to serve as a logistics hub for goods moving throughout the Eastern United States. In May 2024, NC Ports launched the Wilmington-Rocky Mount Express, providing daily, overnight rail service between the Port of Wilmington and the CCX terminal, further enhancing the region's connectivity to global markets.

Real Estate Transformation Along the Corridors

The strengthening transportation infrastructure is already reshaping real estate markets throughout Eastern North Carolina, with particular impact in areas near the I-95/I-87 intersection:

Industrial Real Estate Boom

The most immediate beneficiary has been the industrial real estate sector. Several counties along the I-95 corridor, including Nash, Edgecombe, and Wilson, have seen significant interest in industrial and distribution properties:

1. Purpose-Built Distribution Centers: Developers are acquiring and preparing large tracts of land near the interstate interchange for logistics-focused industrial parks. Nash County alone has over 500 acres of county-owned industrial land ready for development within a 30-mile radius of the CSX terminal.

2. Warehouse Conversions: Existing warehouse and industrial spaces in Rocky Mount, Wilson, and surrounding communities are being upgraded to accommodate modern distribution requirements, including higher ceilings, enhanced load-bearing floors, and improved truck courts.

3. Speculative Development: The increasing confidence in the region's economic future has sparked speculative industrial development—buildings constructed without committed tenants—a strong indicator of expected demand.

Commercial Real Estate Revitalization

The economic stimulus from transportation and logistics growth is also invigorating the commercial real estate market:

1. Retail Corridors: Areas along both interstates are seeing increased interest from national retailers and restaurant chains, particularly at major exits serving growing employment centers.

2. Office Development: While more modest than industrial growth, office development is occurring to serve the administrative and management functions associated with distribution and manufacturing operations.

3. Hospitality: Hotel development has increased along both corridors, serving business travelers associated with the growing industrial base and capitalizing on the strategic location midway between New York and Florida.

Residential Market Impact

The job creation resulting from these economic development initiatives is fueling housing demand in several categories:

1. Workforce Housing: Communities near the I-95/I-87 intersection are experiencing increased demand for housing accessible to logistics, manufacturing, and distribution workers.

2. Middle and Upper-Market Housing: Executive and management-level housing demand is growing, particularly in communities that offer quality-of-life amenities while maintaining accessibility to the interstate corridors.

3. Rental Market Pressure: The influx of workers is putting pressure on the rental market, creating opportunities for multifamily development in historically single-family-dominant markets.

Key Growth Nodes Along the Corridors

While the entire region stands to benefit from the enhanced transportation infrastructure, several specific areas are emerging as particularly promising growth nodes:

Rocky Mount Metropolitan Area

Straddling Nash and Edgecombe counties, Rocky Mount sits directly at the crucial intersection of I-95 and future I-87, making it the epicenter of the corridor's development potential:

1. CSX Terminal Adjacent Development: The areas surrounding the CSX Carolina Connector are positioned for significant industrial and logistics-focused development.

2. Downtown Revitalization: The economic stimulus is supporting efforts to revitalize Rocky Mount's historic downtown, which has already seen investment in the adaptive reuse of the Rocky Mount Mills into a mixed-use campus with breweries, restaurants, and residential units.

3. Residential Growth: Suburban areas around Rocky Mount, particularly those with easy access to the interstate corridors, are seeing increased residential development activity.

Wilson County

Located just south of Rocky Mount along I-95 and with excellent connectivity to future I-87 via US-264, Wilson County offers significant growth potential:

1. Industrial Parks: Wilson has invested in shovel-ready industrial sites to capitalize on the spillover demand from Rocky Mount and the broader logistics corridor.

2. Retail and Commercial Development: Wilson's strategic position as a secondary hub along the corridor is attracting retail and commercial investment, particularly along the I-95 exit areas.

3. Housing Developments: New housing developments are emerging on the western and northern sides of Wilson, catering to both the existing population and newcomers drawn by economic opportunities.

Northeastern Expansion: Toward Elizabeth City

As future I-87 progresses northeastward from Rocky Mount toward Elizabeth City and eventually Norfolk, communities along this developing corridor are strategically positioning themselves for growth:

1. Williamston/Martin County: Where future I-87 will turn north from US-64 to follow US-17, Williamston is preparing infrastructure and sites for future development.

2. Elizabeth City/Pasquotank County: With its strategic position near both future I-87 and the Virginia state line, Elizabeth City is emerging as an important node in the corridor's development.

3. Edenton/Chowan County: Located between Williamston and Elizabeth City along the future I-87 corridor, Edenton is leveraging its historic charm and strategic position to attract both tourism and industrial development.

Economic Development Strategies and Initiatives

The promise of the I-95/I-87 corridor has prompted coordinated economic development efforts across Eastern North Carolina:

Regional Collaboration

Recognizing that economic development opportunities transcend municipal and county boundaries, various collaborative initiatives have emerged:

1. Carolinas Gateway Partnership: Serving Nash and Edgecombe counties, this public-private partnership has been instrumental in securing major investments, including the CSX terminal.

2. NC East Alliance: This regional economic development organization works across Eastern North Carolina counties to market the region and support infrastructure development.

3. BioPharma Crescent: This specialized economic development initiative focuses on pharmaceutical and life sciences companies along the I-95 corridor.

Infrastructure Investments

Beyond the highways themselves, complementary infrastructure investments are enhancing the region's appeal:

1. Rocky Mount-Wilson Regional Airport: Upgrades to this facility are increasing its capacity to serve corporate aviation needs associated with the growing industrial base.

2. Fiber Optic Networks: Enhanced broadband infrastructure is being deployed throughout the region to support both industrial operations and quality-of-life amenities.

3. Water and Sewer Capacity: Counties along both corridors are investing in expanded water and sewer capacity to accommodate industrial growth.

Workforce Development

Anticipating the skills needed for logistics, manufacturing, and distribution operations, various workforce development initiatives are underway:

1. Community College Programs: Nash Community College, Wilson Community College, and Edgecombe Community College are developing specialized training programs aligned with the needs of logistics and manufacturing employers.

2. North Carolina Wesleyan College: Located in Rocky Mount, the college is adapting programs to support management and technical needs of growing industries.

3. Customized Training Programs: The North Carolina Community College System's BioNetwork and similar programs are providing tailored training for specific industry needs.

Challenges and Considerations

Despite the promising outlook, the I-95/I-87 corridor development faces several challenges that will shape its ultimate success:

Infrastructure Timing

The future I-87 remains partially in the planning and construction phases, with no definitive timeline for full completion:

1. Funding Constraints: Highway funding limitations could delay the full realization of the I-87 corridor's potential.

2. Construction Sequencing: Decisions about which segments of future I-87 are prioritized for construction will influence development patterns.

3. Interim Connectivity: Until fully completed, the corridor must rely on existing highways like US-64 and US-17, which may not provide the same level of efficiency as the finished interstate.

Balanced Development

Ensuring that growth benefits the entire region rather than concentrating in a few locations presents another challenge:

1. Rural-Urban Divide: There's a risk that economic benefits could concentrate in the more urbanized areas of Rocky Mount and Wilson while leaving rural communities behind.

2. Inclusive Growth: Ensuring that economic opportunities are accessible to all residents, including historically disadvantaged communities, will require intentional strategies.

3. Environmental Considerations: Managing growth while preserving the region's natural assets, including wetlands and waterways, presents ongoing challenges.

Market Competition

Eastern North Carolina is not operating in isolation—it faces competition from other logistics and distribution hubs:

1. Hampton Roads Competition: The Norfolk/Virginia Beach area, with its major port facilities, competes for similar logistics and distribution operations.

2. I-85 Corridor: The well-established I-85 corridor through central North Carolina continues to attract significant investment.

3. Charleston-Savannah Competition: Major port cities to the south compete for shipping and distribution activities.

The Future Outlook: 2025-2035

Looking ahead, several trends are likely to shape the continued development of the I-95/I-87 corridor:

E-Commerce Driven Demand

The ongoing growth of e-commerce will continue to drive demand for strategically located distribution facilities:

1. Last-Mile Facilities: Smaller distribution centers focused on final delivery to consumers will complement larger regional facilities.

2. Specialized Warehousing: Temperature-controlled and other specialized warehousing facilities will expand to serve specific product categories.

3. Automation Integration: Increasing automation in warehousing and distribution will influence facility design and workforce requirements.

Manufacturing Resurgence

The corridor is well-positioned to benefit from reshoring and near-shoring trends in manufacturing:

1. Supply Chain Resilience: Companies seeking more resilient supply chains are likely to establish manufacturing operations near major transportation hubs.

2. Advanced Manufacturing: The region's relatively low costs and strategic location make it attractive for advanced manufacturing operations.

3. Pharmaceutical Expansion: Building on North Carolina's established pharmaceutical industry, the corridor could see growth in this high-value sector.

Population Growth and Demographic Shifts

Economic opportunities are likely to accelerate population growth and change the demographic makeup of the region:

1. Workforce Migration: The job opportunities created by logistics and manufacturing growth will attract workers from both within and outside North Carolina.

2. Housing Development Acceleration: Residential construction will likely accelerate to accommodate workforce growth.

3. Service Sector Expansion: Population growth will drive expanded retail, healthcare, and other service sectors throughout the corridor.

Eastern NC: An Economic Transformation in Progress

The I-95/I-87 corridor in Eastern North Carolina represents one of the most promising economic development opportunities in the Southeastern United States. The strategic intersection of these vital transportation arteries, anchored by investments like the CSX Carolina Connector, is creating a powerful catalyst for growth in a region that has historically faced economic challenges.

For investors, businesses, and residents, the corridor offers a rare combination of strategic location, infrastructure investment, and growth potential. While challenges remain—particularly in terms of infrastructure completion timelines and ensuring inclusive growth—the fundamental drivers of economic development are aligning to position Eastern North Carolina for a period of sustained prosperity.

As future I-87 progresses toward completion and the full capabilities of the CSX intermodal terminal are realized, the I-95/I-87 corridor is poised to emerge as an economic powerhouse, reshaping the landscape of Eastern North Carolina and establishing the region as a vital link in America's logistics and manufacturing networks.